Audio Component Outsourcing

Multiple Choice

Audio Component Outsourcing
The Echo Corporation manufactures high-quality audio components, such as speakers, amplifiers, and receivers, for home entertainment systems. Echo has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in global sourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that global sourcing would enable the firm to be more competitive without sacrificing quality.
-Which of the following most likely supports the argument of Echo managers to outsource some of the firm's value-chain activities?

A) Echo managers could reduce the wages of U.S.-based employees and sub-contractors.
B) Echo could save money by offshoring data processing and accounting activities.
C) Echo managers could implement a new marketing campaign for foreign markets.
D) Echo could partner with a U.S.-based competitor and share common foreign suppliers.